Natural Gas Prices Drop

Alabama's largest natural gas company, Alabama Gas Corp., is lowering its rates again. The Birmingham-based company instituted one rate reduction Monday and another will go into effect April 1.

Company Vice President Amy Watson Stewart said together, the reductions total more than $14 million in savings between now and September 30, when rates will be reviewed again. She said Tuesday the average residential customer should save about $30 between now and Sept. 30.

The Alabama Public Service Commission said the reductions are due to lower prices for natural gas and because Alabama Gas' return on equity was going above the range allowed by the PSC. Stewart said the rates for Alabama Gas have been declining since the fall of 2008 due to natural gas prices declining.